Double-digit earnings growth enabling investment for sustained future growth
Abcam plc (“Abcam” or “the Company”, AIM: ABC), a global leader in the supply of life science research tools, is pleased to announce its preliminary results for the year ended 30 June 2017.
- Total revenue increased 26.5% on a reported basis to £217.1m (FY 2016: £171.7m). On a constant exchange rate (CER)1 basis the increase was 9.9%2, meeting our full year guidance
- Catalogue revenue increased by 27.4% on a reported basis to £202.5m (FY 2016: £159.0m) and 10.8% on a CER basis
- RabMAb® primary antibody and non-primary antibody revenues grew on a reported basis by 43.9% and 33.0%, and 25.2% and 15.6% on a CER basis, respectively, both delivering on our key performance indicator (KPI) targets
- Reported gross margin of 70.1% following the reclassification of certain costs3 (FY 2016: 70.2%). On a like for like basis FY 2016 gross margin was 69.2%
- EBITDA margin was 32.5% (FY 2016: 33.6%). Adjusted EBITDA margin4 was 33.8% (FY 2016: 34.9%), reflecting the continued investment in the business
- Profit before tax (PBT) on a reported basis was £51.9m (FY 2016: £45.4m) and £64.6m (FY 2016: £53.8m) on an adjusted basis5
- Reported diluted earnings per share (EPS) increased by 11.9% to 20.74 pence (FY 2016: 18.53 pence). Adjusted diluted EPS6 increased by 13.9% to 25.46 pence (FY 2016: 22.35 pence)
- Closing cash and cash equivalents and term deposits were £84.8m (30 June 2016: £70.7m)
- Proposed full year dividend increase of 14% to 10.18 pence per share (FY 2016: 8.91 pence)
- Continued to gain market share globally as a result of our direct customer focus and digital marketing leadership
- Led stakeholder discussions to raise industry quality standards through knockout validation, expansion of recombinant antibody portfolio, and other quality initiatives
- Expanded use of the FirePlex® (formerly Firefly) platform within the kits/assays range by introducing 142 validated antibody pairs and validated a range of these pairs in multiplex immunoassays
- Further expanded our addressable market in custom products and licensing by providing ‘Abcam Inside’ for multiple pharmaceutical and diagnostic development partners
- Accelerated AxioMx technology milestone payments in recognition of technical success demonstrated with the unique antibody development capabilities at AxioMx
- Launched several of the Oracle Cloud modules of our new ERP system and made good progress towards full implementation in FY 2018
- Completed recruitment of the Executive Leadership Team with the appointment of a new CFO as well as new hires of Senior VP of Technology and Senior VP of Global Manufacturing & Supply Chain
- Commissioned construction of Abcam’s purpose-built global HQ at the expanding Biomedical Campus in Cambridge, UK, with expected occupancy in FY 2019
Commenting on the preliminary results, Alan Hirzel, Abcam’s Chief Executive Officer, said:
“It has been a year of progress for Abcam as we have once again delivered on our financial goals. We have delivered 10% constant currency revenue growth, meeting our full year guidance, while continuing to invest in the long-term future of the Company. We look forward to continuing to expand our business as we move toward our ambition of becoming the most influential life sciences company for the research communities globally.”
- Constant currency is calculated by applying prior period’s actual exchange rates to this period’s results.
- Unaudited figures in our pre-close update stated 10.2% revenue growth. As a result of the completion of the year-end financial review and audit, actual total revenue growth in the year is 9.9%.
- This refers to goods-in processing costs, which are costs incurred in receiving, resizing, and storing brought-in product. These costs are only incurred in relation to selling product and management has concluded that it is more appropriate to include the costs in gross margin as a cost of sales to give a more accurate representation of the true cost of product sales. These costs had previously been shown as an operating expense.
- Excluding acquisition and integration costs, the change in fair value of contingent consideration, the initial incremental costs associated with the systems and process improvements and R&D tax credits relating to prior years.
- Excluding acquisition and integration costs, the change in fair value of contingent consideration, unwinding of discount factor on contingent consideration and fees, amortisation of acquisition-related intangible assets, the initial incremental costs associated with the systems and process improvements and R&D tax credits relating to prior years.
- Excluding acquisition and integration costs, the initial incremental costs of systems and process improvements, unwinding of discount factor on contingent consideration and fees, the change in fair value of contingent consideration, amortisation of acquisition-related intangible assets, R&D tax credits relating to prior years and the tax effect of adjusting items.